Mineral Policy & Legislation

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    Indian Mineral Yearbook 2011 (Part- I) 50 th Edition MINERAL POLICY & LEGISLATION (ADVANCE RELEASE) GOVERNMENT OF INDIA MINISTRY OF MINES INDIAN BUREAU OF MINES Indira Bhavan, Civil Lines, NAGPUR – 440 102 PHONE/FAX NO. +91712 - 2565471 PBX : +91712 - 2562649, 2560544, 2560648 E-MAIL :   Website:   October 2012    2-2MINERAL POLICY AND LEGISLATION 2 Mineral Policy & Legislation POLICYThe Mines and Minerals (Regulationand Development) Bill, 2011 1. The Mines and Minerals (Regulation andDevelopment) Act, 1957 was enacted so as toprovide for the regulation of mines anddevelopment of minerals under the control of theUnion. The aforesaid Act was amended in theyears 1958, 1972, 1986, 1987, 1994 and 1999.2.The National Mineral Policy enunciated bythe Central Government in 1993 was forliberalisation of the mining sector. With thepassage of time and the economic developmentof the country, which requires a vibrant energy,metal and commodities sector to meet theinfrastructure, manufacturing and other sectoraldemands, nature and requirements of themineral sector has changed. Based on therecommendations of a High Level Committee setup in the Planning Commission, Government of India, in consultation with State Governments, theNational Mineral Policy, 1993 was replaced with aNational Mineral Policy, 2008 on 13th March,2008. The new National Mineral Policy providesfor a change in the role of the Central Governmentand the State Governments, particularly in relationto incentivising private sector investment inexploration and mining and ensuring level-playingfield and transparency in the grant of concessionsand promotion of scientific mining within asustainable development framework as also toprotect the interest of local population in miningareas. This necessitated a new legislation forharmonisation with the new National MineralPolicy.3. Since the existing law had already beenamended several times, and as further amendmentsmay not clearly reflect the objects and reasonsemanating from the new National Mineral Policy,it is considered necessary to reformulate thelegislative framework in the light of the newNational Mineral Policy, 2008 by repealing theMines and Minerals (Regulation andDevelopment) Act, 1957.4 .   The Mines and Minerals (Development andRegulation) Bill, 2011 prepared by the Ministry of Mines to replace the existing Mines and Minerals(Development and Regulation) Act, 1957 has beenapproved by the Cabinet and the bill has beenintroduced in Lok Sabha on 12th December, 2011,and the same has been referred to StandingCommitte on Coal & Steel. The bill has beenprepared after several rounds of consultation andworkshop with all the Stakeholders. The Bill seeksa complete and holistic reform in the mining sector,with provisions to address issues relating tosustainable mining and local area development,especially families impacted by mining operations.The Bill also aims to ensure transparency, equity,elimination of discretions, effective redressal andregulatory mechanisms along with incentivesencouraging good mining practices, which willalso lead to technology absorption andexploitation of deep seated minerals.5. The salient features of the Mines andMinerals (Development and Regulation) Bill, 2011, inter alia, are as follows :—(a) it provides for a simple and transparentmechanism for grant of mining lease orprospecting licence through competitive biddingin areas of known mineralisation and on the basisof first-in-time in areas where mineralisation is notknown;(b) it enables the mining lease holders toadopt the advanced and sophisticatedtechnologies for exploration of deep-seated andconcealed mineral deposits, especially of metalsin short supply through a new mineral concession;(c) it enables the Central Government topromote scientific mineral development throughMining Plans and Mine Closure Plans enforcedby a central technical agency, namely, the IndianBureau of Mines, as well as the RegulatoryAuthorities and Tribunals;(d) it empowers the State Governments tocancel the existing concessions or debar a personfrom obtaining concessions in future forpreventing illegal and irregular mining;  2-3MINERAL POLICY AND LEGISLATION (e) it empowers the Central Government andState Governments to levy and collect cess;(f) it provides establishment of the MineralFunds at National and State level for funding theactivities pertaining to capacity building of regulatory bodies like Indian Bureau of Mines andfor research and development issues in the miningareas;(g) it provides for reservation of an area forthe purpose of conservation of minerals;(h) it enables the registered co-operatives forobtaining mineral concessions on small depositsin order to encourage tribals and small miners toenter into mining activities;(i) it empowers the Central Government toinstitutionalise a statutory mechanism forensuring sustainable mining with adequateconcerns for environment and socio-economicissues in the mining areas through a NationalSustainable Development Framework;(j) it provides for establishment of a NationalMining Regulatory Authority, which consists of a Chairperson and not more than nine members toadvise the Government on rates of royalty, deadrent, benefit sharing with District MineralFoundation, quality standards and also conductinvestigation and launch prosecution in cases of large scale illegal mining;(k) it provides for establishment of StateMining Regulatory Authority consisting of suchpersons as may be prescribed by the StateGovernment to exercise the powers and functionsin respect of minor minerals;(l) it provides for establishment of a NationalMining Tribunal and State Mining Tribunals toexercise jurisdiction, powers and authorityconferred on it under the proposed legislation;(m) it empowers the State Governments toconstitute Special Courts for the purpose of providing speedy trial of the offences relating toillegal mining;(n) it empowers the Central Government tointervene in the cases of illegal mining, where theconcerned State Government fails to take actionagainst illegal mining;(o) it provides for stringent punishments forcontravention of certain provisions of theproposed legislation; and(p) to repeal the Mines and Minerals(Development and Regulation) Act, 1957.6. A notable feature of the Bill is to provide asimple mechanism which ensures that revenuesfrom mining are shared with local communities atindividual as well as community level so as toempower them, provide them with choices, enablethem to create, maintain and better utilise localinfrastructure and other services provided for theirbenefit. Internal Committee for drafting Sub-legislation  An Internal Committee was constituted in theMinistry of Mines under the Chairmanship of JointSecretary (M&R) for drafting Sub-legislation interms of draft Mines and Mineral Development &Regulation Act, 2011. As decided in the meetingof the committee, sub-committees were constitutedin IBM to prepare following seven rules and theirwork is in progress to prepare draft rules.1. Mineral Concession (Grant andManagement) Rules.2. Scientific Mining and SustainableDevelopment Rules.3. Mineral Royalties and Cess Rules.4. District Mineral Fund Rules.5. Mining Regulatory Authority Rules6. Mining Tribunal Rules7. Mines and Minerals (Special Court) Rules. Committee for Review and Restructuring of theFunctions and Role of IBM A committee was constituted on 23rd July,2009 by the Ministry of Mines for reviewing andrestructuring of functions and role of IBM in termsof the policy directions given in the NationalMineral Policy, 2008. Based on the deliberationsof the stakeholders' meeting held on 20thDecember, 2010 under the Chairmanship of Secretary (Mines), the Committee had modified thereport. Subsequently, a meeting with industrypersonnel was held under the Chairmanship of Secretary (Mines) on 30th August, 2011 on theissue of continuance of Ore Dressing Division inIBM. It was decided in the meeting that IBM's  2-4MINERAL POLICY AND LEGISLATION role should be restricted to be a Regulator in thefield of mineral beneficiation rather than ascommercial organisation for development of flowsheets. Based on the decisions taken in themeeting held on 30th August, 2011, certain chaptersof the Report were re-drafted. The modified draftreport of the Committee is ready for submission. Mining Tenement System The scheme has been taken up by the IBMduring the programme year 2009-10. The objectiveof the Scheme is to develop an online NationalMineral Information System for investors bylinking Central and State organisations engagedin administration of mineral resources in thecountry. The project is being implemented inmineral rich states i.e. Andhra Pradesh,Chhattisgarh, Goa, Gujarat, Jharkhand, Karnataka,Kerala, Maharashtra, Madhya Pradesh, Odisha,Rajasthan and Tamil Nadu.GIS component of the project wasdemonstrated by ISRO incorporating limited datain Bellary (Karnataka) and Durg (Chhattisgarh).The GIS component was also linked to Registrycomponent as per TMIS database in a very limitedway.In respect of Registry component of theproject, the job for preparation of Detailed ProjectReport (DPR) has been assigned by the NICSI tothe consultant M/s Earnest & Young. DPR hasbeen prepared and is at final stage for itssubmission. The statewise inception reportsprepared by M/s Ernst & Young have beenexamined by IBM and comments of the respectedstate Governments are sent. A training programmecum workshop had been organised on 17th & 18thNovember, 2011 at IBM HQ, Nagpur for onlineregister for Mining Tenement System. TheSoftware Development Agency will be finalisedbased on Request for Proposal and initial trialswill be conducted in the year 2013-14. Sustainable Development Framework for MineralSector. The Consultative Committee attached to theMinistry of Mines conducted its meeting thatdiscussed “Sustainable Development Framework (SDF) for Mineral Sector” on 7th September, 2011at Parliament House, New Delhi.The National Mineral Policy, 2008 hasprovided for development of framework forsustainable development, and accordingly, theMinistry has brought out a Draft SustainableDevelopment Framework (SDF) document forMineral Sector. The SDF has not onlyincorporated regulatory requirements, but alsogone beyond to recommend practices and best inclass aspects for addressing the challenges of sustainable development more fully. It provides apath towards achieving sustainable developmentaided by guidance measurable outcomes andreporting assurance.The SDF would reduce environmental andsocial conflicts in mining areas; ensure clarity forstakeholders on risk level in mining lease areas,reduce delays in obtaining clearances, clustersmall operators to become more competitive andcompliant, result in strong monitoring andassurance system and ensure reporting ongovernance and ethical practices. IBM hasgenerated awareness about SDF in miningindustry through organising various workshops. Working Group for Twelfth Five Year Plan The 2011-12 is the terminal year of the XIthFive Year Plan, and therefore, various Ministriesconstituted Working Groups for formulation of theXII Five Year Plan. IBM represented on thefollowing Working Groups constituted by thePlanning Commission:1. Working Group on Mineral Exploration andDevelopment.2. Working Group on Cement Industry.3. Working Group on Occupational Health andSafety constituted by Labour, Employment &Manpower Division of the Planning Commission. Group to Evolve Model Guidelines onEnvironmental Aspects of Quarrying of MinorMinerals Ministry of Environment & Forests hadconstituted a Group of State Secretaries of boththe Environment and Mining Departments of majorStates under the chairmanship of Secretary (E&F),Government of India to evolve model guidelineson environmental aspects of quarrying of minorminerals. IBM represented Ministry of Mines as
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